Hon Hai Precision’s (Foxconn) interconnect technology subsidiary struck a $866 million deal to acquire consumer electronics company Belkin International – its latest move to diversify its business from contract manufacturing.
The deal – made by Foxconn’s FIT Hon Teng (FITHT) division – will increase the company’s consumer-facing presence to include a range of wireless and computer peripherals. It will also provide exposure to the emerging smart home sector.
In a stock market statement, FITHT said Belkin International was a “world-recognised brand” with strong sales channels in the US, Canada, South America, Europe and Asia Pacific. In addition to Belkin’s current product range, “the rapid rise of smart home products, and the near-term projections for the market, provide significant additional tailwinds to future growth”.
Outlining the rationale behind the transaction, FITHT also pointed to the large patent portfolio held by Belkin International, including in smart energy and smart water system technology.
The deal is subject to regulatory clearances.
Foxconn is the world’s largest contract electronics manufacturer and a major Apple supplier, but repeatedly voiced aims to diversify and further expand its influence across the global technology sector.
In February, the company earmarked $4 billion to invest in new projects covering 5G, IoT and AI. Earlier this month, it gained approval for an IPO of subsidiary Foxconn Industrial Internet to fund the plan.